Hundreds of billions in VND, out of the Government’s interest rate subsidy programme of 2009, has been misused.
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| Interest subsidies may have to be extended into 2012 |
In February 2009, the Government kicked off the demand stimulus package with the interest rate subsidy programme. These short-term loans were aimed at helping businesses overcome the difficulties caused by the effects of the global economic crisis.
The Government pumped nearly VND400 trillion (USD19.38 billion) into the interest rate subsidy programme.
However, a combined 139.1 billion (USD6.74 million) of the funding was misused for personal benefit, said Phung Quoc Hien, Chairman of the National Assembly’s Finance and Budget Committee, at a meeting in Hanoi on June 29.
In fact, even companies that suffered no financial hardships at all were leant to, Hien emphasised.
According to an investigation, several interprises were lent a combined VND15 billion (USD726,744) from the programme, which were simply added to their balance sheets, and had no effect on their production, Hien said.
At the time of the investiation a total of VND58.5 billion (USD2.83 million) in loans were overdue, while a combined 41.5 billion (USD2 million) funding were used for purposes different from what they had declared.
A total amount of VND5.9 billion (USD285,852) was disbursed to businesses who already had sufficient capital to buy the goods for which they took out loans.
As much as VND18.2 billion was lent to firms that had not purchased the goods the loans were for.
Hien admitted that all the wrongdoings may actually prolong the programme until 2012, instead of ending within the fiscal year 2009.
According to budget balance sheet for 2009, both budget spending and revenue outstripped earlier estimates.
Budget revenues reached VND455 trillion (USD22 billion) during the year, which is 16.6% higher than what was estimated.
Also, budget spending mounted to over VND560 trillion (USD27.13 billion), which surpassed those estimates by 14.2%.
Budget overspending climbed to 6.9% of GDP, instead of the expected 4.82%.
